Today’s stocks plunged for Ottawa-based company Shopify (SHOP) after it released its latest quarterly revenue results.
Although the company’s total revenues increased by 26 per cent during its fourth quarter, its total operating loss was reported to be 10 per cent higher than the same time last year.
Revenues increase but not as expected
The company’s adjusted operating income was $61.0 million, about 4.00 per cent of its revenue. The difference is said to be caused by increases in compensation driven by the application of a new compensation system and increased headcount. The fourth quarter adjusted operating income excluded a real estate-related impairment charge.
These numbers pale in comparison of the rapid growth the company saw at the beginning of the pandemic when sales rose to about 86 per cent. Shopify stated it has taken this into consideration for its progress and assumed that its numbers would cool off.
Despite all this, the company anticipates seeing revenue growth in the “high-teen percentages” compared to year-over-year moving forward through this year.
New financial outlook calls for price increases
Shopify’s financial outlook for 2023 also included changing the price of its subscription plans, the expected impact of Shopify Fulfillment Network and Deliverr, and increased personnel-related expenses.
However, Shopify’s stocks on the TSX took a hard dip after hours after yesterday’s market and closed today’s market with a loss of 11.05 points.
Last summer, Shopify axed roughly 1,000 jobs which were one of the first tech companies to begin the job layoff wave that still echoes in the industry today.
Shopify (SHOP) closed today’s market at $60.39 per share, down 15.47 per cent.